If an Input Must Be Increased for Output to Increase

question 60

Multiple Choice

If an input must be increased for output to increase it is called a

• A)fixed input.
• B)changeable input.
• C)variable input.
• D)unchangeable input.

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Definitions:

Cost of Goods Manufactured

The cost of goods manufactured is the total cost of producing products during a specific period, including materials, labor, and overhead.

Overapplied Manufacturing Overhead

An instance where overhead costs budgeted for manufacturing surpass the real expenses incurred.

Underapplied Manufacturing Overhead

Refers to the situation where the actual manufacturing overhead costs are higher than the overhead costs allocated to products during a specific period.

Finished Goods Inventory

Represents the stock of completed products that are ready to be sold to customers.